Why you might STRUGGLE Trading - 9 REASONS
Trading is the most simple and hardest career you can have.
There are simple tasks to take but difficult to mentally handle.
Success requires discipline, strategy, and often, a good amount of experience.
However, there are many reasons why people may struggle to achieve profitability in their trading endeavours.
Here are some common pitfalls that might be the reasons why you are struggling as a trader. can
Lack of a Defined System
A trading system involves a set of rules that dictate entry, exit, and money management criteria for your trades.
If you’re trading without a proven and winning system, you’re basically gambling.
You really need to find what works for you both mentally and financially.
Either you can experiment with different trading strategies.
Or you can adopt proven systems that you believe with what will work for you.
It’s crucial to find a strategy that suits your risk tolerance, investment goals, and lifestyle.
Inability to Handle Losses
Everyone experiences losses in trading.
You’ll take losing trades on a daily, weekly and monthly basis…
If you cannot handle losses, you may find yourself holding onto losing positions for too long.
You might feel you’re stuck in a rut.
You might feel like a loser yourself.
So, this needs to stop.
Start treating trading as a business.
Accept that losses as the costs of trading.
Don’t dwell on losses. Accept them, embrace them and learn from them.
Get Rich Quick Mentality
Many people get the excitement that trading Is something that will bring bread in the short term.
This cannot be farther from the truth.
You need to get out of this “get rich quick” mentality.
Establish medium to long term goals and work at it.
Make sure, your expectations are realistic and be patient.
Set achievable goals and concentrate on slow, steady progress rather than risky, high-return trades.
Lack of Experience
Like any other skill, trading requires experience to master.
If you’re new to trading, you may lack the knowledge needed to navigate the market effectively.
To gain experience, start small and learn as you go.
Maybe even start off with a demo and paper account.
This way you’ll be able to practice without risking real money.
Read books, take courses, watch from experienced traders. Learn from their mistakes, so you can avoid paying high school fees.
You ignore the Big Market Trends
Before you trade, do yourself a favour.
Get to know the market environment.
If the price is heading up, look for longs (buys).
If the price is heading down, look for shorts (sells).
Trends can give important insights into potential future market movements.
You’ll feel more in-tune with the markets when you know their overall directions.
Letting Emotions Rule
Fear, greed and ego are the enemies of profitable trading.
If you feel any of the three dangerous traits, you’ll make decisions based on emotions.
This will give you a gambling mentality of thrill, despair and denial.
Cut out the emotions and stick to a more mechanical approach.
Be like the market not like a human.
Fail to Diversify
You need to know how to mitigate risks.
One market probably won’t make the cut.
If it moves sideways for months on end, you’ll miss out on powerful opportunities elsewhere.
So, diversify with different stocks, indices, commodities, Forex and cryptos.
Also, don’t be over exposed too long with buys or too short with sells.
Find the balance, because markets can change direction very quickly.
Not Keeping a Trading Journal
You need to get yourself a log book.
A trading journal will help you to keep track of your strategies, successes, and failures.
It will also guide you with the gameplan you need with a better chance of succeeding.
Know what you can gain, lose and how long you can go through potential drawdowns (downturns).
The past data might not indicate future results, but it can give you a likelihood of what is to come for your trading, markets and your portfolio.
Lack of Discipline and integration
Discipline is sticking it out.
Doing what you need to follow your trading plan.
No matter how good or bad the market is, when the trade lines up you need to JUST TAKE THE TRADE.
And no matter how your feeling on the day, you need to do what it takes to succeed.
Integration is similar but it’s actually adapting it whole heartedly into your life.
This is where you don’t’ think twice.
This is where you wake up and trade like brushing your teeth.
If you suck at trading, you need to pinpoint why. Work on it, improve and evolve.
Let’s sum the reasons why you might SUCK at trading up one more time….
Lack of a Defined System
Inability to Handle Losses
Get Rich Quick Mentality
Lack of Experience
You ignore the Big Market Trends
Letting Emotions Rule
Fail to Diversify
Not Keeping a Trading Journal
Lack of Discipline and integration
There are simple tasks to take but difficult to mentally handle.
Success requires discipline, strategy, and often, a good amount of experience.
However, there are many reasons why people may struggle to achieve profitability in their trading endeavours.
Here are some common pitfalls that might be the reasons why you are struggling as a trader. can
Lack of a Defined System
A trading system involves a set of rules that dictate entry, exit, and money management criteria for your trades.
If you’re trading without a proven and winning system, you’re basically gambling.
You really need to find what works for you both mentally and financially.
Either you can experiment with different trading strategies.
Or you can adopt proven systems that you believe with what will work for you.
It’s crucial to find a strategy that suits your risk tolerance, investment goals, and lifestyle.
Inability to Handle Losses
Everyone experiences losses in trading.
You’ll take losing trades on a daily, weekly and monthly basis…
If you cannot handle losses, you may find yourself holding onto losing positions for too long.
You might feel you’re stuck in a rut.
You might feel like a loser yourself.
So, this needs to stop.
Start treating trading as a business.
Accept that losses as the costs of trading.
Don’t dwell on losses. Accept them, embrace them and learn from them.
Get Rich Quick Mentality
Many people get the excitement that trading Is something that will bring bread in the short term.
This cannot be farther from the truth.
You need to get out of this “get rich quick” mentality.
Establish medium to long term goals and work at it.
Make sure, your expectations are realistic and be patient.
Set achievable goals and concentrate on slow, steady progress rather than risky, high-return trades.
Lack of Experience
Like any other skill, trading requires experience to master.
If you’re new to trading, you may lack the knowledge needed to navigate the market effectively.
To gain experience, start small and learn as you go.
Maybe even start off with a demo and paper account.
This way you’ll be able to practice without risking real money.
Read books, take courses, watch from experienced traders. Learn from their mistakes, so you can avoid paying high school fees.
You ignore the Big Market Trends
Before you trade, do yourself a favour.
Get to know the market environment.
If the price is heading up, look for longs (buys).
If the price is heading down, look for shorts (sells).
Trends can give important insights into potential future market movements.
You’ll feel more in-tune with the markets when you know their overall directions.
Letting Emotions Rule
Fear, greed and ego are the enemies of profitable trading.
If you feel any of the three dangerous traits, you’ll make decisions based on emotions.
This will give you a gambling mentality of thrill, despair and denial.
Cut out the emotions and stick to a more mechanical approach.
Be like the market not like a human.
Fail to Diversify
You need to know how to mitigate risks.
One market probably won’t make the cut.
If it moves sideways for months on end, you’ll miss out on powerful opportunities elsewhere.
So, diversify with different stocks, indices, commodities, Forex and cryptos.
Also, don’t be over exposed too long with buys or too short with sells.
Find the balance, because markets can change direction very quickly.
Not Keeping a Trading Journal
You need to get yourself a log book.
A trading journal will help you to keep track of your strategies, successes, and failures.
It will also guide you with the gameplan you need with a better chance of succeeding.
Know what you can gain, lose and how long you can go through potential drawdowns (downturns).
The past data might not indicate future results, but it can give you a likelihood of what is to come for your trading, markets and your portfolio.
Lack of Discipline and integration
Discipline is sticking it out.
Doing what you need to follow your trading plan.
No matter how good or bad the market is, when the trade lines up you need to JUST TAKE THE TRADE.
And no matter how your feeling on the day, you need to do what it takes to succeed.
Integration is similar but it’s actually adapting it whole heartedly into your life.
This is where you don’t’ think twice.
This is where you wake up and trade like brushing your teeth.
If you suck at trading, you need to pinpoint why. Work on it, improve and evolve.
Let’s sum the reasons why you might SUCK at trading up one more time….
Lack of a Defined System
Inability to Handle Losses
Get Rich Quick Mentality
Lack of Experience
You ignore the Big Market Trends
Letting Emotions Rule
Fail to Diversify
Not Keeping a Trading Journal
Lack of Discipline and integration
✅ Facebook:
facebook.com/groups/matitrader
🌐Website:
timonandmati.com
𝕏 (Formerly Twitter):
twitter.com/timonr
Trade Well,
Timon Rossolimos
Founder, MATI Trader
(Pro trader since 2003)
facebook.com/groups/matitrader
🌐Website:
timonandmati.com
𝕏 (Formerly Twitter):
twitter.com/timonr
Trade Well,
Timon Rossolimos
Founder, MATI Trader
(Pro trader since 2003)
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